Wall Street ends higher as easing inflation, robust Q2 earnings boost sentiment; chip stocks down

The US stocks ended in the green on Wednesday due to softening inflation data and an encouraging start to the second-quarter earnings season.

The Dow Jones Industrial Average settled 0.29% higher at 52,658.64, while the S&P 500 closed with 0.38% gains at 7,572.40. The tech-heavy NASDAQ also jumped 0.61% to end at 26,266.75.

Despite the Wall Street closing in positive territory, the chip stocks continued to decline. Except Nvidia, shares of Intel, Micron, AMD, Western Digital, SanDisk, and ADRs of South Korean semiconductor giant SK Hynix slipped.

The Producer Price Index report by the Labour Department provided cooler-than-expected inflation data, giving hopes to investors that the inflation is softening.

Morgan Stanley and BlackRock shares ended the session up 0.4% and 6.6%, respectively, after the earnings beat expectations.

Morgan Stanley posted net revenue of $21.3 billion for the second quarter ended June 2026 as against $16.8 billion in the same period of the previous year. Net income stood at $5.6 billion, or $3.46 per diluted share, compared to $3.5 billion a year ago.

Ted Pick, chairman and chief executive officer, said, “Active markets and consistent execution across all three regions drove exceptional results for our integrated firm, delivering record revenues of over $21 billion and record EPS of $3.46. Excellent results in institutional securities were driven by our leading equities franchise with continued momentum in investment banking and fixed income. Differentiated content from our research teams continues to drive high levels of client engagement."

BlackRock has become the first investment firm with assets under management (AUM) of $15.3 trillion, following $868 billion of net inflows over the last 12 months, reflecting 10% organic base fee growth. The firm posted record first half net inflows of $321 billion, including $192 billion in Q2.

Laurence D Fink, Chairman and CEO, said, "Market fundamentals are strong and well supported, with higher margins and earnings momentum catalysed by new technology. The scale and depth of our client relationships globally have never been greater. Clients are turning to BlackRock for insights and opportunities. That’s powering record financial performance, $868 billion of net inflows, and 10% organic base fee growth over the last year. Flows in the first six months of 2026 more than doubled year-over-year, driving AUM to a record $15.3 trillion."

Meanwhile, Brent Crude, the international benchmark, rose 0.42% to $85.30 per barrel as the US launched fresh strikes on Iran, and Tehran threatening to disrupt alternative fuel export routes along with the Strait of Hormuz if the attacks do not stop.

West Texas Intermediate advanced 0.60% to $80.08 a barrel.